The makeover of the AIC fund lineup continues at Manulife.
The mutual fund arm of Manulife Financial Corp. plans to terminate several AIC funds and reassign others to be run by its in-house investment arm.
Manulife will close the four funds on or about Dec. 18. They include Value Leaders Maximum Growth Portfolio, AIC American Advantage Corporate Class, AIC Global Advantage Corporate Class and AIC Global Premium Dividend Income Corporate Class.
"We are closing four funds to both streamline our product offering, and to reduce the costs associated with managing smaller funds," Jeff Ray, assistant vice-president of mutual fund products at Manulife, said Friday.
Before the termination date, unitholders get a notice outlining their options to redeem their investments or to switch to another fund within the Manulife AIC Fund family.
Manulife closed a deal last month to buy the retail fund assets of AIC Ltd., which was owned by businessman Michael Lee-Chin. Financial details of the transaction was not disclosed. Portland Investment Counsel, formerly AIC Investment Services, will continue to run some of the larger AIC funds.
With some funds, the objectives will remain unchanged, but some investment strategy changes will be made to reflect the investment approach used by the MFC Global Investment Management team, he said.
They include funds like AIC Global Balanced, AIC Global Bond Fund, AIC Global Premium Dividend Income Fund/AIC Global Premium Dividend, Income Corporate Class, AIC Total Yield Corporate Class and Copernican International Dividend Income Fund.
In addition, Manulife said there will be fee reductions effective Nov. 2 on two AIC money market funds due to the current low interest rate environment, and the need to maintain a positive yield.